June Gold News 2016

On Friday afternoon, following the UK’s decision to leave the European Union, former Fed governor, Alan Greenspan, shocked the world by announcing we should return to the gold standard.

In Greenspan’s opinion we are on the cusp of another financial crisis which will dwarf the 2008 economic meltdown. After decades of boom and bust the imbalances in the global economy are so large they can no longer be rebalanced. The only solution is to return to a classical gold standard

As shock-waves vibrate across the global financial markets, Italy is preparing a 40-billion-euro bailout of their banking sector. Could this be the first domino to fall in the aftermath of Brexit?

Shares in Milan collapsed for two consecutive days following the vote. Shares in Sanpaolo plummeted 12.5%, Banka MPS fell 12% and Mediobana retreated 10.4%. The Italian banking sector is perceived as the weakest link in the European banking chain.

Government officials are ready to use state funds to recapitalize the banks via the issuance of special bonds. Non-performing Loans in the Italian banking sector now stand at 18% of ...

The gold price has fallen to a two-week low on the eve of Britain’s historic EU referendum. Should the UK decide to leave the gold price is expected to fall, but downside moves are expected to be limited. Despite the recent pull back the yellow metal is up 19% since the start of 2016

The latest BBC poll tacker indicates 45% of the population want to leave, while 44% want to exit the 28-member Eurozone. Voting stations will remain open until 10:00pm tonight with the final result expected to be announced early on Friday morning.

Demand for physical gold has surged in recent weeks as retail and institutional investors scramble to buy investment grade bars and coins. Historically investors turn to the yellow metal times of political and financial uncertainty. Gold has intrinsic value and has a history of maintaining its value when traditional asset classes fall.

With the referendum result too close to call, currency markets have been experiencing extreme volatility. If the leave campaign prevails sterling is expected to fall against the world's major currencies and the gold price to soar.

Gold and sterling are both trading violently ahead of next week’s crucial European referendum. Brexit has the potential to be the most important political event of 2016, perhaps even more crucial than the November U.S. election. Politicians in Brussels are becoming increasingly concerned the people of Britain will vote to leave. Should the leave campaign prevail on the 23rd of June the European project could start to unravel.

Europeans across the continent are becoming increasingly frustrated with the European experiment. In a recent poll undertaken by The Pew Research Centre nearly half of all Europeans said they have lost faith in ...

Investors are holding their breath as global markets retreat and the pound plummets as concerns grow the UK will vote to leave the Eurozone. Sterling has fallen to an 8-week low against the U.S. dollar and a three year low against the Japanese Yen as investors flee the pound for less risky assets. Traders are alarmed by recent poll data pointing to a surge in popularity for the Leave campaign.

Overnight stock markets fell across Asia compounding last week’s losses. The Japanese Nikkei plummeted 3.5% and the market in Hong Kong dropped 2.55%. Brussels are worried if Britain leave the ...

Since the 2008 economic crisis central banks have been successful in keeping the fiat financial system alive. Rather than dealing with the structural problems in our current system, policymakers have doubled down on failed policies. Central banks across the globe have slashed interest rates and many have printed trillions of currency units to purchase government securities.

By creating artificial demand central banks have created one of the biggest financial bubbles in history. Yields on government debt are now trading at 500 years lows. Many in the industry are forecasting the bond market is like a supernova which one day will ...

Former chief of the Bank of England, Mervyn King believes the fiat based monetary system is falling apart and no one knows how to fix the problem. It is clear from Kings remarks he believes the global economy is facing considerable headwinds. Speaking in the World Gold Council’s latest report King advocates owning gold at a time of what he describes “radical uncertainty.”

This is not Kings first warning, back in February the former governor warned that another financial crisis is a certainty. He claimed the 2008 meltdown was a result of a failing fiat based financial system and not ...

In recent weeks the pound has plummeted against most major currencies. Here’s why it happened and why sterling could be vulnerable further falls.

The value of sterling is effected by a number of factors, including inflation, growth prospects and interest rates. Developed nations tend to have stronger and more stable currencies as investors are confident to invest in those countries. When foreign companies invest in UK industry they convert their cash reserves into sterling to buy machinery, property and pay staff. This creates demand and pushes up the price of sterling when compared to other currencies.

The organisation for Economic Co-operation and Development (OECD) has slashed its growth forecast for the UK as the likelihood of a Brexit rises. For the first time opinion polls suggested a narrow lead for the leave campaign. Bureaucrats in Brussels worry that a Brexit would spark a spate of similar votes across the continent and undermine the Euro project.

The economic think tank believes a Brexit could send shockwaves across an already fragile global economy.

As economies stall the OECD is calling for governments to act to boost output and stop the world falling into a prolonged period of economic ...

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Precious metal prices can be volatile and the value of your metal may go down as well as up. No responsibility can be accepted by Jewellery Quarter Bullion Limited for any loss caused by acting on information we have provided. We do not offer investment or tax advice and recommend that you conduct your own independent research before making any investment decisions.

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